Käteisvaraksi

Käteisvaraksi is a Finnish term that translates to "cash reserve" or "cash on hand." It refers to the amount of money a business or individual keeps readily accessible to meet short-term financial obligations or unexpected expenses. This can include physical cash in a vault or checking accounts, as well as highly liquid assets that can be quickly converted to cash without significant loss of value.

Businesses maintain a käteisvaraksi to cover immediate operational costs such as payroll, supplier payments, and petty cash needs. A sufficient cash reserve ensures smooth daily operations and prevents disruptions caused by temporary cash flow shortages. It also provides a buffer against unforeseen circumstances like equipment breakdowns, sudden drops in revenue, or emergency repairs.

For individuals, käteisvaraksi functions as an emergency fund. This reserve is crucial for covering unexpected medical bills, car repairs, or periods of unemployment. Having accessible funds can prevent the need to take on high-interest debt during emergencies. The appropriate amount for a käteisvaraksi varies depending on individual or business circumstances, typically ranging from a few months of living expenses for individuals to a percentage of operating costs for businesses. Effective management of käteisvaraksi involves balancing liquidity needs with the potential for earning returns on idle funds.